Investments in cryptocurrency Funds and products reached $ 4.5 billion in the first quarter of 2021, indicating a continued increase in investment from institutional investors.
According to a report By Coinshares published on Reuters, investment in cryptocurrency funds and products rose 11% from $ 3.9 billion in the last quarter to $ 4.5 billion in the first three months of this year .
However, the growth of investments in crypto-currencies in the first quarter of 2021 slowed compared to the fourth quarter of last year. In the fourth quarter of 2020, investments in the cryptocurrency sector increased by 240% compared to the third quarter of 2020.
“Indicates a broader slowing trend, as quarterly growth rates tend to be very varied.”
At the start of this week, cryptocurrency market cap has crossed the $ 2 trillion mark and Bitcoin’s market cap has risen above $ 1 trillion.
The biggest influx of investments in the first quarter was in BTC – $ 3.5 billion, followed by ETH with $ 765 million.
The volume of crypto assets under management also hit a new high of $ 59 billion. Last year that figure was $ 37.6 billion.
Of the $ 59 billion in assets under management, active investment managers made up just 1.5% of total assets under management, up from 3.6% at the start of the fourth quarter of last year.
The gray scale is always the largest crypto asset manager with $ 46.1 billion under management. CoinShares, the second largest in Europe digital asset director, controls around $ 5.1 billion crypto assets.
At the end of March, CoinShares presented a weekly report on the investments of financial institutions in cryptocurrency products, noting that new investments by institutional investors in Bitcoin fell to the October 2020 level.
the crypto-currencies volatility is often cited as one of the reasons Wall Street investors are reluctant to invest in Bitcoin. However, JPMorgan analysts believe the indicator will normalize and attract more institutional investors.